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Income Taxes (Tables) | 12 Months Ended
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May 31, 2024
Income Tax Disclosure [Abstract] |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows:
|  | May 31, |
In millions |  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |  |  |
Compensation and employee benefit liabilities |  | $ |  | 60.3 |  |  | $ |  | 52.4 |
Other current liabilities |  |  |  | 12.4 |  |  |  |  | 17.3 |
Tax credit carry forward |  |  |  | 0.2 |  |  |  |  | 0.2 |
Stock-based compensation |  |  |  | 16.5 |  |  |  |  | 14.8 |
Unrealized losses on available-for-sale securities |  |  |  | 40.1 |  |  |  |  | 43.4 |
Capitalization of research and development |  |  |  | 68.6 |  |  |  |  | 54.1 |
Leases |  |  |  | 13.9 |  |  |  |  | 15.9 |
Net operating loss (“NOL”) carry forwards |  |  |  | 5.0 |  |  |  |  | 5.1 |
Tax benefit of uncertain tax positions |  |  |  | 16.2 |  |  |  |  | 13.6 |
Gross deferred tax assets |  |  |  | 233.2 |  |  |  |  | 216.8 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Deferred contract costs |  |  |  | 151.2 |  |  |  |  | 151.3 |
Capitalized software |  |  |  | 58.2 |  |  |  |  | 56.5 |
Depreciation |  |  |  | 0.3 |  |  |  |  | 2.4 |
Goodwill and intangible assets |  |  |  | 91.8 |  |  |  |  | 99.1 |
Operating lease right-of-use assets |  |  |  | 9.5 |  |  |  |  | 13.7 |
Other |  |  |  | 7.7 |  |  |  |  | 5.7 |
Gross deferred tax liabilities |  |  |  | 318.7 |  |  |  |  | 328.7 |
Net deferred tax liability |  | $ |  | (85.5 | ) |  | $ |  | (111.9 | )
Components of Provision for Income Taxes | The components of the provision for income taxes are as follows:
|  | Year ended May 31, |
In millions |  | 2024 |  |  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ |  | 433.5 |  |  | $ |  | 418.1 |  |  | $ |  | 326.0 |
State |  |  |  | 117.4 |  |  |  |  | 117.1 |  |  |  |  | 104.5 |
Non-U.S. |  |  |  | 6.5 |  |  |  |  | (0.3 | ) |  |  |  | (1.0 | )
Total current |  |  |  | 557.4 |  |  |  |  | 534.9 |  |  |  |  | 429.5 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  |  | (18.6 | ) |  |  |  | (34.2 | ) |  |  |  | 0.9 |
State |  |  |  | (4.6 | ) |  |  |  | (7.4 | ) |  |  |  | 0.9 |
Non-U.S. |  |  |  | (6.6 | ) |  |  |  | (2.4 | ) |  |  |  | 0.5 |
Total deferred |  |  |  | (29.8 | ) |  |  |  | (44.0 | ) |  |  |  | 2.3 |
Income taxes |  | $ |  | 527.6 |  |  | $ |  | 490.9 |  |  | $ |  | 431.8 |
Reconciliation of U.S. Federal Statutory Tax Rate | A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows:
|  | Year ended May 31,
|  | 2024 |  | 2023 |  | 2022
Federal statutory tax rate |  |  | 21.0 |  | % |  |  | 21.0 |  | % |  |  | 21.0 |  | %
Increase/(decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal tax benefit |  |  | 4.0 |  | % |  |  | 4.2 |  | % |  |  | 4.6 |  | %
Stock option windfall benefit |  |  | (0.4 | ) | % |  |  | (0.4 | ) | % |  |  | (0.9 | ) | %
Tax credits |  |  | (0.8 | ) | % |  |  | (0.7 | ) | % |  |  | (1.1 | ) | %
Other items |  |  | — |  | % |  |  | (0.1 | ) | % |  |  | 0.1 |  | %
Effective income tax rate |  |  | 23.8 |  | % |  |  | 24.0 |  | % |  |  | 23.7 |  | %
Reconciliation of Gross Unrecognized Tax Benefits, Not Including Interest or Other Potential Offsetting Effects | A reconciliation of the beginning and ending amounts of the Company’s gross unrecognized tax benefits, not including interest or other potential offsetting effec ts, is as follows:
|  | Year ended May 31, |
In millions |  | 2024 |  |  | 2023 |  |  | 2022 |
Balance as of beginning of fiscal year |  | $ |  | 72.0 |  |  | $ |  | 50.2 |  |  | $ |  | 22.4 |
Additions for tax positions of the current year |  |  |  | 20.6 |  |  |  |  | 20.6 |  |  |  |  | 11.1 |
Additions for tax positions of prior years |  |  |  | 0.8 |  |  |  |  | 4.6 |  |  |  |  | 20.6 |
Reductions for tax positions of prior years |  |  |  | (3.8 | ) |  |  |  | (2.1 | ) |  |  |  | (1.8 | )
Settlements with tax authorities |  |  |  | (0.3 | ) |  |  |  | (0.4 | ) |  |  |  | (0.4 | )
Expiration of the statute of limitations |  |  |  | (2.1 | ) |  |  |  | (0.9 | ) |  |  |  | (1.7 | )
Balance as of end of fiscal year |  | $ |  | 87.2 |  |  | $ |  | 72.0 |  |  | $ |  | 50.2 |

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